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Exam 23: Personal Property, Bailments, and Insurance

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Question 41

Multiple Choice

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Greg obtains from Helpful Insurance Company a policy that provides that Greg has thirty days after a premium's due date to pay it before the policy will be canceled. This is​

A) a multiple insurance clause.
B) an antilapse clause.
C) an appraisal clause.
D) an incontestability clause.

E) A) and C)
F) C) and D)

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Question 42

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Automobile insurance cannot be canceled for nonpayment of premiums.

A) True
B) False

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Question 43

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The insured can cancel an insurance policy at any time.

Someone who finds abandoned property acquires title to it and that title is good against the whole world, except the true owner.

Anna obtains a business liability insurance policy for her Brew & Bagels Coffee Shop from ChoiceFirst Insurance Company. When an event occurs that gives rise to a claim, each party has a duty to​

Estimable Credit Company loans funds to Farmland Granaries, LLC, to buy a silo. Estimable obtains an insurance policy from Grangers Insurance, Inc., to cover the silo. Farmland also obtains a policy from Grangers to cover the silo. Later, Farmland sells the silo to Hi-Yield Harvest Company but keeps the policy. Hi-Yield also obtains a pol-icy from Grangers to cover the silo. Estimable agrees to finance Hi-Yield's purchase of the property. A fire totally destroys the silo. Who can recover for the loss?

In the insurance context, risk management is the transfer of certain risks from an insured to an insurance company by contractual agreement.

Insurance coverage is always effective the moment an insurance broker accepts the applicant's first payment toward the premium.

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is​

Only personal property, not real property or persons, can be the subject of a bailment.

If the bailed property has been lost or is returned damaged, a court will presume that the bailee was negligent.

During a storm in Tornado Alley, a house is destroyed, but its owner Dorothy survives. Dorothy plans to return to the site to salvage her possessions, but she delays. Meanwhile, Elliott combs through the ruins and removes all useful items. Dorothy learns of the recovery and files a suit against Elliott, claiming that the items are hers. Elliott responds that the destroyed house was abandoned and therefore he has good title to whatever he took possession of. What is the court likely to rule, and why?